Scorpion Production Company Planned to Use 1 Yard of Plastic

question 241

Multiple Choice

Scorpion Production Company planned to use 1 yard of plastic per unit budgeted at $81 a yard. However the plastic actually cost $80 per yard. The company actually made 3900 units although it had planned to make only 3300 units. Total yards used for production were 3960. How much is the total materials variance?

• A) $48600 U
• B) $4860 U
• C) $3960 F
• D) $900 U

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Definitions:

LDCs

Less Developed Countries, which are nations with lower levels of income, industrialization, and modernization.

Industrial Countries

Nations that are characterized by a high level of industrialization, technological advancement, and a relatively high standard of living.

Birth Rates

The number of live births per thousand of the population per year.

Economic Development

The process by which a nation improves the economic, political, and social well-being of its people.